Financial Daily from THE HINDU group of publications
Wednesday, Apr 19, 2006
Financial Daily from THE HINDU group of publications Wednesday, Apr 19, 2006 |
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Corporate
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New Projects Sona Okegawa gears up for Rs 60-cr expansion Neha Kaushik
Investment break-up Rs 30 crore would be invested for an export oriented unit in Maharashtra, Rs 12 crore for a new dye shop and Rs 18 crore for expanding capacity its Gurgaon unit.
Dr Surinder Kapur, CMD, Sona Group.
New Delhi , April 18 The Rs 800-crore Sona Group has charted out an aggressive growth plan for group company Sona Okegawa. It will receive an investment of about Rs 60 crore this year, out of which Rs 30 crore would be invested towards putting up an export oriented unit (EOU) in Maharashtra, Rs 12 crore for a new dye shop and Rs 18 crore for expanding capacity of gears at its unit in Gurgaon. According to Dr Surinder Kapur, Sona Group Chairman and Managing Director, the earlier restrictions on exports on Sona Okegawa are not applicable any more, and the company was now free to supply to the international markets. Sona Okegawa, a 60:40 joint venture with Mitsubishi Materials Corporation (Japan), could previously only supply to Mitsubishi in the initial years as per an agreement with Mitsubishi. "We expect exports to account for 50 per cent of our total sales in the forthcoming years," Mr Kapur said. The company is targeting revenues of Rs 300 crore by 2009, compared to the existing Rs 100 crore.
Mitsubishi tie-up
Meanwhile, Sona Okegawa has signed an agreement with Mitsubishi to set up a dye shop, which would supply to both the company's plants in Gurgaon and Pune. The company's total production capacity of gears is also set to increase over the next year from the current six million units to 20 million units. Sona Okegawa's forthcoming EOU, which is likely to come up at Pune, would have a capacity of 10 million units and will commence operations by February 2007. Further, the company is in the process of expanding capacity at its Gurgaon unit from six million units to 10 million units.
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